Introduction
Digital organisation:
a digital organisation implements information systems to realize its
strategic objectives in order to achieve a competitive advantage and
create stakeholder value in a rapidly changing environment
The availability of information technology does not guarantee the
(correct) usage of this technology, technology is only a piece of the
puzzle
- Building blocks
o Technology
o Organisation
o Management
- Strategies for a competitive advantage
=> If we want to digitize organisations we need to know their
strategic objectives because give companies a million dollar and
they will all spend it differently
o Lowest cost
o Product leadership
o Customer and supplier intimacy
- Role of information systems
o Supporting the current course
technology is primarily seen to support in achieving pre-
defined strategic objectives.
Emphasis is on optimization and automation: doing
better at wat you are doing already, technology is seen
as a cost center
o Driver for fundamental change (Netflix)
technology is seen as a driver for strategic change instead of
supporting the current path, technology is a driver to reshape
the path itself
Emphasis is on innovation and transformation,
technology is seen as source of competitive advantage
o Source of new companies and industries
Distruptive impact of new industries and business
models: do we still need teachers now that AI is really
well developed?
Example: Kodak did not want to invest in the business
idea of one of their workers (digital camera’s) because
they did not see what it could be become
,- Triple bottom line (triple P)
o Definition
the framework goes beyond traditional measures of profit
(“bottom line”) and additionally includes environmental and
societal dimensions to measure investment results in a more
comprehensive manner
o Profit: maximizing profits for shareholders
o Planet: positive impact on the planet
o People: creating value for all stakeholders, highlighting a firm’s
societal impact and commitment to people including
customers, employees and community members
- Never-ending story
in today’s fast paced technological landscape, organisations must
continuously monitor technological innovations and their impact on:
o Own organisation: What are the opportunities in supporting
our current strategy or enabling new strategies?
o Competitors: How do our competitors adopt these innovations
and what risks does this bring to our organisation?
o Customers: How do customers requirements and behaviour
evolve?
o Society: What does society expect from technological
innovation?
o Government: What about evolutions in legislations?
, Strategy
- Why invest in IT?
even in hard times, investments in IT keep growing
o Strategic business objectives of information systems
o Porter’s competitve forces model
o Disruptive innovation model
o Value webs, synergies, corecompetencies and network-based
strategies
o Digital transformation framework
Strategic business objectives of information systems
- Operational excellence
o Deliver products and services at lowest-cost through improving
operational efficiency and increasing productivity by
automating routine tasks and streamlining processes.
Companies are known for their reliable, efficient, and
low-cost products or services
o Information systems and technologies help improve efficiency
and productivity => improved efficiency results in higher
profits
o Ryanair, Ikea, Colruyt
- Product leadership
o Creating innovative and high-quality products that set firm
apart, pushing boundaries of performance and getting them to
the market quickly
Companies are known for their cutting-edge technology,
superior quality, and high value-add products or services
o IS enable firms to create superior/innovative products, services
o Tesla, Spotify, HP instant ink, Airbnb, Uber, AppleWatch
- Customer intimacy
o Focus on creating deep understanding of customer's needs
and preferences and tailoring products or services to meet
those needs
Companies are known for their personalized customer
service, customized products, and strong customer
relationships
, o IS can improve communication and collaboration with
customers, leading to better relationships, increased loyalty,
and enhanced customer service
Customers who are served well become repeat, loyal
customers who purchase more
o Mandarin Oriental Hotel in London, Netflix ‘top picks for you’
Mandatory paper: Treacy, M., & Wiersema, F. (1993). Customer
intimacy and other value disciplines. Harvard business review, 71(1),
84-93.
- Supplier intimacy
o Companies seek to work closely with their suppliers to improve
quality, reduce costs, and increase innovation
o IS can improve communication and collaboration with
suppliers, leading to better relationships
The more a firm engages its suppliers, the better the
suppliers can provide vital inputs
o Fevia
- Competitive advantage
o Often results from achieving previous business objectives
Better performance through opertational excellence
Product leadership through new products and services
Better response to suppliers and customers
o Industry leaders set the golden stand within their respective
industries
- Survival
o Firms may need to invest in IS out of necessity = cost of doing
business
o Keeping up with competitors to survive
A bank’s introduction of ATMs
Mobile banking app
o Compliance to laws and regulations
The Sarbanes-Oxley Act = federal law in US and was
response to corporate scandals such as Enron, objective
is to protect investors and public by requiring companies
to establish internal controls and procedures for financial
reporting to ensure that financial statements are
accurate and complete
Value disciplines:
o Superior customer value is achieved by
becoming champion in 1 value disciplines, even at expense of
Digital organisation:
a digital organisation implements information systems to realize its
strategic objectives in order to achieve a competitive advantage and
create stakeholder value in a rapidly changing environment
The availability of information technology does not guarantee the
(correct) usage of this technology, technology is only a piece of the
puzzle
- Building blocks
o Technology
o Organisation
o Management
- Strategies for a competitive advantage
=> If we want to digitize organisations we need to know their
strategic objectives because give companies a million dollar and
they will all spend it differently
o Lowest cost
o Product leadership
o Customer and supplier intimacy
- Role of information systems
o Supporting the current course
technology is primarily seen to support in achieving pre-
defined strategic objectives.
Emphasis is on optimization and automation: doing
better at wat you are doing already, technology is seen
as a cost center
o Driver for fundamental change (Netflix)
technology is seen as a driver for strategic change instead of
supporting the current path, technology is a driver to reshape
the path itself
Emphasis is on innovation and transformation,
technology is seen as source of competitive advantage
o Source of new companies and industries
Distruptive impact of new industries and business
models: do we still need teachers now that AI is really
well developed?
Example: Kodak did not want to invest in the business
idea of one of their workers (digital camera’s) because
they did not see what it could be become
,- Triple bottom line (triple P)
o Definition
the framework goes beyond traditional measures of profit
(“bottom line”) and additionally includes environmental and
societal dimensions to measure investment results in a more
comprehensive manner
o Profit: maximizing profits for shareholders
o Planet: positive impact on the planet
o People: creating value for all stakeholders, highlighting a firm’s
societal impact and commitment to people including
customers, employees and community members
- Never-ending story
in today’s fast paced technological landscape, organisations must
continuously monitor technological innovations and their impact on:
o Own organisation: What are the opportunities in supporting
our current strategy or enabling new strategies?
o Competitors: How do our competitors adopt these innovations
and what risks does this bring to our organisation?
o Customers: How do customers requirements and behaviour
evolve?
o Society: What does society expect from technological
innovation?
o Government: What about evolutions in legislations?
, Strategy
- Why invest in IT?
even in hard times, investments in IT keep growing
o Strategic business objectives of information systems
o Porter’s competitve forces model
o Disruptive innovation model
o Value webs, synergies, corecompetencies and network-based
strategies
o Digital transformation framework
Strategic business objectives of information systems
- Operational excellence
o Deliver products and services at lowest-cost through improving
operational efficiency and increasing productivity by
automating routine tasks and streamlining processes.
Companies are known for their reliable, efficient, and
low-cost products or services
o Information systems and technologies help improve efficiency
and productivity => improved efficiency results in higher
profits
o Ryanair, Ikea, Colruyt
- Product leadership
o Creating innovative and high-quality products that set firm
apart, pushing boundaries of performance and getting them to
the market quickly
Companies are known for their cutting-edge technology,
superior quality, and high value-add products or services
o IS enable firms to create superior/innovative products, services
o Tesla, Spotify, HP instant ink, Airbnb, Uber, AppleWatch
- Customer intimacy
o Focus on creating deep understanding of customer's needs
and preferences and tailoring products or services to meet
those needs
Companies are known for their personalized customer
service, customized products, and strong customer
relationships
, o IS can improve communication and collaboration with
customers, leading to better relationships, increased loyalty,
and enhanced customer service
Customers who are served well become repeat, loyal
customers who purchase more
o Mandarin Oriental Hotel in London, Netflix ‘top picks for you’
Mandatory paper: Treacy, M., & Wiersema, F. (1993). Customer
intimacy and other value disciplines. Harvard business review, 71(1),
84-93.
- Supplier intimacy
o Companies seek to work closely with their suppliers to improve
quality, reduce costs, and increase innovation
o IS can improve communication and collaboration with
suppliers, leading to better relationships
The more a firm engages its suppliers, the better the
suppliers can provide vital inputs
o Fevia
- Competitive advantage
o Often results from achieving previous business objectives
Better performance through opertational excellence
Product leadership through new products and services
Better response to suppliers and customers
o Industry leaders set the golden stand within their respective
industries
- Survival
o Firms may need to invest in IS out of necessity = cost of doing
business
o Keeping up with competitors to survive
A bank’s introduction of ATMs
Mobile banking app
o Compliance to laws and regulations
The Sarbanes-Oxley Act = federal law in US and was
response to corporate scandals such as Enron, objective
is to protect investors and public by requiring companies
to establish internal controls and procedures for financial
reporting to ensure that financial statements are
accurate and complete
Value disciplines:
o Superior customer value is achieved by
becoming champion in 1 value disciplines, even at expense of
